James Packer Crown Casino Sydney
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- In short, that it remains suitable to hold a Sydney licence. Related: Crown casino inquiry: John Alexander unable to shed light on why James Packer left board. As the largest shareholder, Packer is one of those associates that must also be suitable. It all adds up for an uncomfortable few hours for Packer.
- Packer is the major shareholder and a director of Crown Resorts Limited, one of Australia's largest casino groups. In October 2017, Crown's market capitalisation was over A$8 billion. Every year Crown's Australian resorts attract over 31 million visits.
Counsel assisting the NSW inquiry into the suitability of Crown Resorts to operate Sydney’s new Barangaroo casino summed up this week by telling the commissioner that Crown was 'not a suitable person to continue to give effect to the licence, and that Crown Resorts is not a suitable person to be a close associate of the licensee'.
James Packer appearing at a NSW inquiry into Crown's suitability for a casino license. Its shares have recovered since a hammering revealed in 2019-20 accounts for Packer flagship Consolidated.
Adam Bell SC reached the conclusion after considering the deleterious impact on the good governance of Crown Resorts caused by its dominant shareholder [James Packer’s Consolidated Press Holdings] and, ultimately, Packer.
He reminded the inquiry that protection of the public interest was a key objective of the NSW Casino Control Act.
The Barangaroo casino is yet to open, but Crown already operates two other Australian casinos – one in Melbourne and one in Perth – and one in London.
The Melbourne casino has been the centre of multiple whistle-blower and other allegations connected with tampering with gambling machines, associations with criminal identities, and the arrest of 19 Crown staff in China in 2016.
The Sydney inquiry was initiated after the Nine network and The Age and Sydney Morning Herald published allegations about money laundering and links with criminals.
A tale of two cities
The Melbourne regulator, the Victorian Commission for Gambling and Liquor Regulation, acted more quietly, initiating a still-uncompleted inquiry into the arrest of Crown staff in China in 2017, and putting its inquiry into the money laundering allegations on hold until it had seen the outcome of the NSW inquiry.
Belatedly, last month, a full eight months after the NSW hearings began, it issued Crown with a “show cause” notice relating to money laundering controls.
The state government had asked it to act as “a matter of priority” in mid-2019.
In 2017, Victoria’s auditor-general identified serious issues relating to the VCGLR’s oversight of Crown.
It highlighted a “lack of leadership”, the second-lowest staff satisfaction levels in the Victorian public sector, a lack of a “coherent organisation-wide approach to casino supervision”, and insufficient attention to key areas of risk in the casino’s operations, including money laundering.
In its five-yearly review of Crown’s licence in 2018, the VCGLR identified some concerns.
The concerns involved compliance with money laundering rules, the lack of engagement of independent directors with an oversight of the Melbourne casino, an uninspiring adoption of the responsible gambling rules, and a less-than-complete honouring of requests for self-exclusion.
It nevertheless concluded that it was in the public interest for Crown to maintain its licence.
Fines rather than sanctions
Fines have been the VCGLR's preferred means of dealing with breaches of licence conditions.
In 2018, it fined Crown A$300,000 for gambling machine tampering, and $25,000 in 2018 for a breach of junket rules.
It said it believed fines were enough in the light of Crown’s 'past compliance history and general and specific deterrence, balanced against the level of cooperation, remorse, contrition and corrective action taken by Crown'.
Yet the NSW inquiry has heard evidence from James Packer and the company’s directors and management pointing to multiple continued failures in all these categories, in Melbourne.
The NSW premier has signalled concern about the casino’s planned opening in December, given that inquiry is not due to report until February.
West Australia’s regulator found no issues with Crown Burswood in its most recent (2018-19) annual report, but says it is monitoring the NSW inquiry.
Too big to touch?
It might be that Crown has become too big to regulate, at least in Victoria.
For some reason, the company has had enormous success with deflecting criticism. Along with other gambling operators, it has recruited powerful political figures from both major parties to assist it, and is a major political donor.
There was ample evidence of the problems in Victoria well before the NSW inquiry identified them.
Read more: The Crown allegations show the repeated failures of our gambling regulators
The Victorian regulator’s slow and overly respectful approach might be because it felt Crown was too important to be held to account, or had too many political connections, or was too important as an employer or contributor to government revenue.
Or it might be because, as the auditor suggested, it has problems with staff.
James Packer Crown Casino Sydney London
But if we are to have any faith in Victoria’s ability to regulate gambling and crime, it’ll need to do more. NSW is showing how.
Read more: Gaming the board: Crown Resorts shows you just can't bet on 'independent' directors
This article originally appeared on The Conversation.
Crown Sydney is one of the most anticipated projects in Sydney, as it will give a new look to the Barangaroo waterfront area. The massive addition to the area will include a hotel, apartments, restaurants, and a VIP-focused casino.
Construction on the project finally began in 2016, though sometimes stalled periodically due to legal battles and other red tape. Though the estimated completion date has changed numerous times, it is now expected to open on Christmas Day 2020. That’s what James Packer says, anyway.
Packer Visits Sydney Site
Earlier this month, billionaire investor and largest Crown Resorts shareholder James Packer emerged from a mostly self-imposed exile from public life to tour the Crown Sydney development site. He seemed pleased with the progress of the $2.4 billion project at Barangaroo.
In fact, Packer was so pleased that he announced to the media that it would open to the public on Christmas Day this year.
The dates for the opening of the property have changed numerous times. When the project first began, the opening date was expected to be early 2020 for the first tower and the end of 2020 for the rest of it. But along the way, due to numerous battles over the height of the tower and other major details, the opening was delayed. Most expected it to open sometime in 2021.
Packer was particular, though, by naming Christmas Day of this year in his first public appearance in more than a year.
“It’s really pleasing,” Packer said to the media, referring to the opening being three months earlier than planned. “We are truly indebted to our builders, architects and tradies who have made this possible.”
Mid-2019 Issues Resolved
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As mentioned, the Crown Sydney project had been delayed numerous times. The most significant and lengthy problem had to do with the height of the tower.
Crown Resorts believed they paid a price for the property that included an exclusive view of the harbor. At one point, Crown and its building partners discovered that the Barangaroo Delivery Authority(BDA), run by the New South Wales government, took bids from other companies for taller buildings that would hinder the Crown tower view.
The two entities went to court, and the battle moved through to the NSW Supreme Court. In December 2018, that court ruled for Crown, ruling that the BDA violated its development agreements with Crown and co-plaintiffs Lendlease.
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An appeal by the BDA resulted in a settlement. The details were not publicized, but the NSW government dropped its appeal, and Crown retained its claim to the exclusive views.
Crown Sydney Project Details
The website dedicated to the project, which still boasts of an early 2021 opening date, gives insight into the new destination for visitors to Sydney. It is described as a “pinnacle of modern design that harmoniously brings together an opulent hotel, prestigious apartments, signature restaurants, premium gaming areas and a lavish spa.”
One Barangaroo will be the tower of residences – 82 of them – with views of the Sydney Harbour and its landmarks. The apartments range from 2-bedroom to 6-bedroom homes with some Duplex Penthouses as well.
Packer purchased two floors of the hotel, not the residence tower, that are being converted into a second home for him. “I grew up in Sydney, and my kids still spend time here,” he said. “It’s a beautiful place, and I hope to spend more time visiting.”
James Packer Crown Casino Sydney Opera House
And there will be gaming. But Crown Sydney has taken special care not to call the casino a casino. The website calls it a “premium table games experience.”
Evidently, there will be no pokies, only table games like baccarat, blackjack, and roulette. And though the website is sparse on details, it does refer to a “VIP-only gaming facility.”
Previous Problems with VIP Gaming
The Crown scandal that took the company and gaming community by storm in 2019 had fallout that particularly affected VIP gaming in Australia.
Much of the spotlight was on VIP gamblers at Crown properties, many of whom used junkets to travel from Asia and gamble for high stakes. After the scandal broke, though, the government crackdowns began, and most junkets stopped.
This put such a dent in Crown’s bottom line that Crown Executive Chairman John Alexander had to acknowledge it at a shareholder presentation in late 2019. He revealed that VIP turnover for the first three and a half months of the new fiscal year, which started July 1, was down 46%.
Crown blamed much of the downturn on the Chinese economy hurt by the United States and on the media that publicized the scandal.
Regardless, Crown Sydney is going to face a challenge to create a successful new VIP-only gaming facility, one with no pokies, at the new property. The new environment and scrutiny on high-stakes gambling will be a test of Crown’s dedication to gaming.